VINtek Helps Texas Keep Car Ownership Titles On the Straight and Narrow
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PHILADELPHIA--July 12, 2011: VINtek has helped with the drafting of legislation that eliminates the cost and exposure to fraud associated with paper vehicle titles with liens in the state of Texas. VINtek is a provider of automotive collateral management, electronic lien and title (ELT) services and direct finance processing for automotive lenders.
“Implementing an ELT program will assist Texas in reducing pressure on an extremely tight agency budget.”
Texas House Bill 2575 was signed by Governor Rick Perry on June 17, 2011 and authorizes the Texas Department of Motor Vehicles (TxDMV) to develop rules that will result in the holding of automotive liens electronically, instead of via paper titles, by most lien holders. The legislation goes into effect Sept. 1, 2011 at which time the department may, by rule, begin to require participation for certain categories of lien holders. The legislation provides a phased approach for compliance by depository institutions based upon the quantity of liens recorded in a calendar year. Participation for institutions recording less than 100 security interests in a motor vehicle a year is voluntary.
ELT replaces paper titles with an electronic exchange of data between the TxDMV and VINtek, acting as an intermediary on behalf of a lien holder. The program reduces costs with the elimination of paper and automation of a manual process.
ELT also eliminates exposure to a growing area of fraud that involves falsified lien release letters. Perpetrators create fictitious lien release documents and receive clear titles from the DMV. In an ELT program only the lien holder of record can electronically release its lien -- the DMV will reject any attempted release of lien via a letter.
"We are thrilled to see Texas join the ranks of Arizona, Pennsylvania, California and Louisiana in moving lien holders to electronic liens with the passing of HB 2575," said Larry Highbloom, president of VINtek. "Implementing an ELT program will assist Texas in reducing pressure on an extremely tight agency budget."
Texas handles the second highest vehicle title volume in the country and the state implemented a voluntary ELT program in 2009 to help reduce DMV costs. The program became popular and in 2010 VINtek helped 50 financial institutions in Texas move to electronic titles. The company currently manages ELT for more than 200 financial institutions in the state and nearly 2,000 lenders nationwide. Financial institutions see a costs savings of 50-60 percent per loan when switching to ELT.
About VINtek
In its 21st year, Philadelphia-based VINtek provides automotive collateral management services and direct auto finance solutions for banks, credit unions and other auto finance institutions. Through its offices in Philadelphia, Las Vegas, Sacramento, Calif., and Troy, Mich., VINtek helps lenders increase customer satisfaction and operating efficiency while simultaneously decreasing costs and errors associated with collateral management through the introduction of innovative consumer loan servicing technologies. VINtek holds three U.S. patents on automotive lien processes and is the recipient of numerous industry awards for its processing services.
